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ConnectedClusters Landscaping Study 48 Influencing Policy: Shaping Decisions Policy is not a given, and is open to being shaped, steered and influenced through public discourse and debate. Some exemplary clusters have taken an active role in shaping the policy discourse in their municipalities; contributing to shaping and fostering an environment in which climate innovation can thrive. Again, the involvement of ECCI in shaping Edinburgh City Council’s sustainability activity provides an excellent opportunity to influence city-wide decision-making. Another good example of this can be found in the West Midlands’ Energy Capital, where a number of interventions have served to raise the profile of the cluster in the minds of local politicians. In the run-up to the election of the West Midlands Combined Authority Mayor, an ‘energy hustings’ was held as part of the Energy Capital launch. This brought together invited candidates from all of the participating political parties to discuss the region’s energy innovation needs and establish the need for climate-friendly policies in front of an assembled audience of local business, industry, the public sector and academia. Further ideas for good cluster practice can be found in the establishment of a ‘Policy Commission’ 24 , to shape regional West Midlands, policy by convening representatives from local industry, national regulators, the grid and distribution network operators – actors that are key gatekeepers for energy innovation. The process of drafting the commission itself acted as a focal point for bringing together a wide range of regional and national stakeholders with an interest in the cluster – and the high-profile Westminster launch of the cluster further heightened its profile. AVASEN has influenced policy through lobbying and its work through the SmartCities Think Tank. Whilst lobbying is a traditional technique, it has been no less effective. This is evidenced by the success of the cluster in its collaborative lobbying of regional government, successfully securing a partial compensation of the ‘tax on the sun’. The less traditional method employed by the SmartCities Think Tank – drawing entire municipal cabinets together with think tank members – has also proven effective, with numerous municipalities acting on the advice given through their interactions with the Think Tank. However, AVAESEN still stands to gain from the other clusters, with a collaborative, bottom up approach to informing policy on a national scale through a ‘Policy Commission’ being a strong contender. This could be developed by following the template set out in the West Midlands case study. Drawing together expertise from a broad range of stakeholders to inform a policy dialogue, followed by a high-profile launch and dissemination of the findings. In terms of developing the cluster, this serves several objectives. The most obvious of these is that it provides a coherent and reasoned argument to policy-makers, which may help to shape policy along more favourable trajectories that aid the introduction of systemic climate innovations. Secondly, it acts as a forum to bring together actors within the cluster at high level. Through encouraging this dialogue and providing a forum for discussion, cluster actors are drawn together to find common ground. Thirdly, it acts as a platform for elevating the status of the cluster nationally, and in some cases internationally. However, for such an approach to be successful, the conclusions and recommendations of the study need to resonate with the prevailing local and national politics and not become mired in detail. Cleantech London’s present form has its heart in the London Sustainable Development Commission within the GLA. It has been able to shape policy accordingly, allowing for greater business support as well as climate-friendly regulation and development – supporting the future growth of the cluster. This is an interesting contrast to Energy Capital and ECCI, who both influence policy through a demonstrative and advisory capacity in order to catalyse nationwide change. London’s approach evidently stems from the GLA’s deep involvement in the cluster, and as it is still in its birth phase there is potential for it to adopt models similar to Energy Capital and ECCI.
University of Birmingham | Climate-KIC 49 Developing Markets for Climate Solutions Developing innovation alone is not a fruitful strategy unless there are customers for the products, services and knowledge that clusters have generated. Often, in the case of climate innovation clusters, green products and services present an alternative from the status quo and natural markets do not always exist. Climate innovation clusters create value for their stakeholders by working together to create new markets for cleantech technologies. Examples of this can be found in Valencia, where AVAESEN convened meetings between city and regional governments aimed at showcasing the work of local innovators to those responsible for commissioning local works. By showcasing the potential advantage of new climate-friendly products and approaches and brokering relationships, a market for those products is created to supply the municipality. Sometimes, there are infrastructures that will enable certain types of climate innovation. For example, hydrogen fuelling stations for fuel cell vehicles; EV charging points for electric vehicles. Sometimes to enable the adoption of climate innovations, successful clusters have focused on remedying the infrastructure barriers that prevent markets for new technologies from growing. In the Frankfurt study, we see the creation of hydrogen refuelling infrastructure, enabling the industrial hydrogen generated on site for chemical processes to be used as on-site low-carbon transport fuel. Similarly, in Birmingham the development of fuel cell refuelling facilities enabled a market for hydrogen transport solutions as part of the Energy Capital EIZ at Tyseley. Sometimes, it is about creating the foundations to enable infrastructure to work at scale. For example, the roadmap thinking going into the development of UK Central in the West Midlands will consider the effects on the local grid of a massive electro-mobility hub. Out of all the clusters, AVAESEN is currently placed in the most hostile regulatory environment. The fact that renewable energy not only doesn’t receive government support, but is actively discouraged from being included in the grid, meant that it was forced to diverge and innovate in order to survive. The divergence came in the form of broadening from energy to cleantech as well as helping internationalise some of its members. The innovation comes from its business support and think tank services. In terms of developing markets for climate solutions, the TAPs model has been effective in funding its efforts. One of the key services, aside from the ‘business as usual’ support, is access to networks which need climate solutions. The success of the TAPs model has led to the development of the SmartCities Think Tank, except this time the roles are reversed – rather than matching businesses to demand, demand (municipalities in this case) comes to the businesses. It is acknowledged that without having gained the support of businesses through the TAPs system, the reputation and goodwill would not have been there to institute the Think Tank model. AVAESEN is also an excellent example of how having in-house accelerator projects can help develop market solutions, as well as ensuring the cluster’s stability. The fact that businesses mature through the cluster means they are more likely to be happy to pay for the cluster’s services. Strengthening the breadth of businesses within the cluster means it is a more diverse and attractive partner, meaning it draws in more business for its members. Growing the ecosystem grows the market for climate solutions. The involvement of the GLA in Cleantech London means that policy has been very effectively used to develop markets for climate solutions. Both demand and supply are supported through regional policy in London. Demand is created by the need for London to meet its 2020 clean air targets, the stronger environmental regulations proposed in the Energy and Environment Strategy, and the desire for sustainable development in the 37 areas identified for redevelopment in the London Plan. Supply is supported by the Economic Development Strategy, which seeks to support cleantech businesses to reach market.
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